O2 UK to Target Reducing Churn Ahead of New Customer Sign-Ups

The UK arm of Telefonica O2 is shifting its focus away from mass customer sign ups and will instead be focusing on key customer segments in its marketing in the future.

Jonathan Earle, head of customer strategy & development at Telefonica
told a marketing conference that the mobile network is responding to the
realities of a saturated market.

Earle said that brands needed to look at their existing customers as advocates
for the brand and its services, an "permeate that out" to their
friends. He sees word of mouth as a vastly more powerful marketing tool.

Addressing the issue of churn, he added: "We have your calling circle
and know how influential you are in the group of people you talk to. If you were
to go to another mobile phone provider, it is likely you will take a bunch of
people with you."

For that reason, retention of existing customers is looking more important
for the mobile network, and it is adapting its marketing towards discounts and
offers for long-term and influential customers.

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